Hello everybody. Finally getting ready to start flipping homes. My biggest problem I am facing is getting capital to invest, but I found a solution. I figured no bank is going to give me money since I am 19 with no collateral. So a year ago I bought a house at my local tax deed sale. I drove by it, didn't look inside and bought it. Lucky it didn't sale at the auction so I bought it after the auction. $845.00 had the title search and came back clean. Needless to say I ended up going inside to find my worst nightmare or so I thought. The chimney was leaking and rotted out all the floor joists, termite damage on top of that and mold all in the attic. I ended up tearing it all down by hand and started construction in May 2017. I got moved in December and just need to build my porch and finish the master bathroom and it'll be done. (Weather is not letting me start the porch). I didn't hire anything to be done besides finishing the drywall (that was a mistake). Everything else was done by me myself and I. While working a full time 3rd shift factory job. I took on about $11,000 of debt to finish the house everything else came out of my pocket. I use to buy and sell livestock, done woodworking, flipped and few cars and still currently flipping trailers car trailers etc. My house is a 3 bed 2 bath 1290 sqft house. I have about $30,000-$35000 grand in it. Game plan is to get a home equity loan from the bank. It is in process now. It appraised for $60,000 drive by appraisal. But they have to come back and do a full appraisal since I tore it down and started over. I was suppose to close this Thursday but since I found all this out today it's going to get pushed out about 1 week. I went and looked at a cute little house 3 bed 1 bath 1004 sqft house with a 1 car attached garage. They are asking $21,900 it has been for sale for awhile so hoping I can get it for $15,000 stick about 10-15000 in it (rehab Prices are inflated quite a bit should have no more then $10,000 in it but better safe then sorry. It should sale anywhere between $60,000-$80,000 hard to get a better number since houses that are selling are out dated. They bank said they will give me $51,000 but that number might go up depending on the full appraisal. So with that money I plan on paying of my debt (intrest is higher on the $11,000 then on the home equity loan) and using the rest to invest! Sorry for the long read! Any input, tips, and tricks is highly appreciated! Thanks in advance!
You are doing great. Try to stay out of debt except for your HELOC and keep your credit spotless. Stay in the original house for two years total then either brrrr it or sell it for the next one you will live in and get a fresh HELOC.
The earlier you start, the better, so that's great that you're getting into it so young!
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